{"id":302231,"date":"2021-07-19T01:35:16","date_gmt":"2021-07-18T22:35:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-and-yale-researchers-lay-out-2-regulatory-frameworks-for-stablecoins\/"},"modified":"2021-07-19T01:35:16","modified_gmt":"2021-07-18T22:35:16","slug":"fed-and-yale-researchers-lay-out-2-regulatory-frameworks-for-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-and-yale-researchers-lay-out-2-regulatory-frameworks-for-stablecoins\/","title":{"rendered":"# Fed and Yale researchers lay out 2 regulatory frameworks for stablecoins"},"content":{"rendered":"

“# Fed and Yale researchers lay out 2 regulatory frameworks for stablecoins <\/strong>”
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The Federal Reserve\u2019s ongoing research into central bank digital currencies, or CBDCs, has broadened to include stablecoins and whether they can be effectively regulated.\u00a0<\/p>\n

In their paper, which was published<\/a> in SSRN\u2019s eLibrary on July 17, Gorton and Zhang argue that \u201cprivately produced monies\u201d such as stablecoins are \u201cnot an effective medium of exchange because they are not always accepted at par and are subject to runs.\u201d The authors then go on to propose solutions to address what they consider to be \u201csystemic risks created by stablecoins.\u201d<\/p>\n

After taking a deep dive into the history of private money, beginning with the Free Banking Era in the United States, a period from 1837 to 1864,\u00a0 the researchers concluded that policymakers have two choices with respect to regulating stablecoins: make stablecoins equivalent to public money or introduce a CBDC, which entails taxing private stablecoins out of existence.<\/p>\n

With respect to the first choice, the government could require that stablecoins be issued through FDIC-insured banks or stipulate that all stablecoins be fully collateralized by Treasuries at the Federal Reserve. <\/p>\n

The paper made its way through Twitter<\/a> on Sunday, with Avanti founder Caitlin Long making an interesting connection<\/a> between the publication date and an upcoming stablecoin working group led by Treasury Secretary Janet Yellen.<\/p>\n

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HERE’S A NEW PAPER out of the Fed (+Yale) that lays out regulatory options for US dollar #stablecoins<\/a>. Interesting–it was released yesterday (on a Saturday) & its first footnote references tomorrow’s big President’s Working Group meeting on the topic.https:\/\/t.co\/gfGWDbjjA4<\/a> pic.twitter.com\/5VwMlnErHJ<\/a><\/p>\n

\u2014 Caitlin Long (@CaitlinLong_) July 18, 2021<\/a><\/p><\/blockquote>\n